Far from being a soft issue, trust underpins the management of your digital business and digital ecosystems. Trust is one of the most vital elements of any business relationship. But the shift away from linear value chains focused on internal relationships toward more open networks of relationships in the context of digital ecosystems has made trust a critical driver of new revenue opportunities and more efficient operations. As the foundation of your B2B digital ecosystem, trust has a significant impact on your bottom line as:
Multistakeholder relationships are gradually replacing interpersonal relationships. Enterprise customers expect their presales and aftersales engagements with vendors to be coherent and consistent. CIOs must support trust-building technology across the value chain.
Digital transformation that doesn’t put trust at the center will fail. Digital alters business dynamics. Trust is the oxygen of business activity. Without trust, all enterprise stakeholder relationships are suboptimal.
Trust scores will emerge to certify the trustworthiness of business and workers. To overcome the challenges of false identities and data tampering, data custodians will emerge to authenticate identities and ensure data quality.
Back in 2013, my colleague Anjali Lai and I wondered how the "summer of Snowden" was affecting consumer attitudes about privacy. So, we fielded a survey and ran some qualitative analysis in our ConsumerVoices Market Research Online Community. A year later, we used that historical data, combined with Consumer Technographics and social listening data to see how perception and behavior were changing. It was a fascinating study.
Fast forward another year: it's now pre-pre-primary season in the US, and candidates are talking about privacy and personal data protection. There have been three more major data breaches affecting millions of Americans. The adblocking debate is at fever pitch, while Internet giants make privacy a point of differentiation. Obviously, we decide to run our study a third time. And this time, we incorporate (opted-in, permission-based) data from our Consumer Technographics Behavioral Study.
Our findings? Consumers are more willing than ever to 1) walk away from your business if you fail to protect their data and privacy; 2) adopt technologies like tracker-blockers and VPNs to limit their exposure to data misuse; and 3) extend their protective actions to the physical realm.
And the real kicker is that, if you're one of the marketers who's been counting on Millennials who "don't care" about their online privacy, you're going to be waiting a long time.
I'm just back from two weeks in Hong Kong, where I'd been invited to give a keynote at the 10th anniversary conference of the Business Information Industry Association. Since I was there, I took the time to meet with some fantastic Forrester clients in industries ranging from travel to insurance to retail to consulting. In nearly every discussion, whether I was speaking to a BT or a marketing exec, we eventually got to the topic of the "privacy-personalization paradox."
This is an issue I've explored extensively, and have written about before. It's a challenge that marketers in the US dabble with when they're considering investments in tools like retail beacons and cross-device identity resolution. But it was enlightening to hear about the challenges that firms in APAC face: antiquated privacy laws, a dearth of third-party consumer data, and even the incredible difficulty of compiling a single customer view across their own first party data. Interestingly, though, the solution in both markets is similar: preference management.
Trust is the most critical component to develop and maintain a healthy brand. Customers are more likely to trust experts, friends and relatives than marketing campaigns. That’s why it matters to deliver the experience you promise and to build a trusted community around your brand.
As marketers will need to use more personal data to power mobile and contextual experiences, we expect consumer distrust for brands to increase
No matter how quickly wearables and connected objects emerge in the next 10 years, mobility has already introduced a paradigm shift: the ability to collect and use data about individuals in the physical world. Mobility will change the nature of the data marketers can use and act upon. Data collected via mobile will be much more sensitive, more personal and more contextual. Via sensors on wearables or smartphones, marketers will access data on our bodies and our whereabouts in real-time. This represents a huge opportunity for marketers to power better marketing across all channels not just mobile. Mobile and connected objects will not only change the nature of the data marketers can access, it will also bring privacy concerns to the physical space and it risks breaking anonymization.
Together with my colleague Fatemeh Khatibloo, co-author of the report, we digged into our Technographics data to better understand consumers’ perceptions on mobile privacy. We also conducted many interviews to discuss with marketers, vendors, and regulators how they approach mobile data and privacy. Here below are a couple of facts we learnt:
Open data is critical for delivering contextual value to customers in digital ecosystems. For instance, The Weather Channel and OpenWeatherMap collect weather-related data points from millions of data sources, including the wingtips of aircraft. They could share these data points with car insurance companies. This would allow the insurers to expand their customer journey activities, such as alerting their customers in real time to warn them of an approaching hailstorm so that the car owners have a chance to move their cars to safety. Success requires making logical connections between isolated data fields to generate meaningful business intelligence.
But also trust is critical to deliver value in digital ecosystems. One of the key questions for big data is who owns the data. Is it the division that collects the data, the business as a whole, or the customer whose data is collected? Forrester believes that for data analytics to unfold its true potential and gain end user acceptance, the users themselves must remain the ultimate owner of their own data.
The development of control mechanisms that allow end users to control their data is a major task for CIOs. One possible approach could be dashboard portals that allow end users to specify which businesses can use which data sets and for what purpose. Private.me is trying to develop such a mechanism. It provides servers to which individual's information is distributed to be run by non-profit organizations. Data anonymization is another approach that many businesses are working on, despite the fact that there are limits to data anonymization as a means to ensure true privacy.
There is growing evidence of a harmonic convergence of Infrastructure and Operations (I&O) with Security and it is hardly an accident. We often view them as separate worlds, but it’s obvious that they have more in common than they have differences. I live in the I&O team here at Forrester, but I get pulled into many discussions that would be classified as “security” topics. Examples include compliance analysis of configuration data and process discipline to prevent mistakes. Similarly, our Security analysts get pulled into process discussions and other topics that encroach into Operations territory. This is as it should be.
Some examples of where common DNA between I&O and Security can benefit you and your organization are:
Gain economic benefit by cross-pollinating skills, tools, and organizational entities
Improve service quality AND security with the same actions and strategies
Learn where the two SHOULD remain separate
Combine operational NOC and security SOC monitoring into a unified command center
Develop a plan and the economic and political justifications for intelligent combinations